What is the opportunity cost of allocating more and more resources to the production of capital goods?

Question

Quizplus · Accepted Answer

The opportunity cost of allocating more resources to the production of capital goods is the amount of consumption goods that could have been produced, which means giving up the production of consumption goods in order to produce capital goods. As a result, allocating more resources to the production of capital goods may lead to a decrease in current consumption and a sacrifice of present consumption for future benefits. However, it does not necessarily lead to a decrease in real income, an increase in pollution, or environmental goods foregone.

What Is the Opportunity Cost of Allocating More and More